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OCC BULLETIN 2012-38
Subject: Civil Money Penalty: Inflation Adjustment Amendment
Date: November 20, 2012
To: Chief Executive Officers of All National Banks and Federal Savings Associations, Federal Branches and Agencies, Department and Division Heads, All Examining Personnel, and Other Interested Parties
Description: Final Rule
On November 6, 2012, the Office of the Comptroller of the Currency (OCC) published in the Federal Register the attached final rule amending its rules of practice and procedure for national banks (12 CFR part 19) and federal savings associations (12 CFR part 109) to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction, as required by law. The adjustments apply only to violations or practices that occur after December 6, 2012, the effective date of this rule.
The Inflation Adjustment Act requires federal agencies with CMP authority to publish regulations to adjust each CMP authorized by law that the agency has jurisdiction to administer, as appropriate. The purpose of these adjustments is to maintain the deterrent effect of CMPs and promote compliance with the law. The Inflation Adjustment Act requires the adjustments to be made at least once every four years. The prior adjustments by the OCC and the Office of Thrift Supervision were published in the Federal Register in 2008.
This rule revises the tables applicable to national banks (12 CFR 19.240(a)) and federal savings associations (12 CFR 109.103(c)) that identify the statutes that provide the OCC with CMP authority, describe the different tiers of penalties provided in each statute (as applicable), and set out the maximum penalty the OCC may impose pursuant to each statutory provision. This final rule also implements section 100208 of the Biggert-Waters Flood Insurance Reform Act of 2012, which amends the CMP prescribed in 42 USC 4012a(f)(5) by increasing the maximum CMP per violation from $385 to $2,000 and eliminating the $135,000 cap on the total amount of penalties assessed against a single regulated lender in any calendar year.
For further information, contact Jean Campbell, Senior Attorney, Legislative and Regulatory Activities Division, (202) 874-5090; or P. Holley Roberts, Senior Attorney, Enforcement and Compliance Division, (202) 874-4800.
Daniel P. Stipano